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  • BC-1.1 BC-1.1 Promotions

    • Introduction

      • BC-1.1.1

        The purpose of the content of this Section is to set out requirements pertaining to the promotion of financial services and products offered in/from Bahrain by conventional retail bank licensees. For the purposes of this Section, promotions mean all types of promotional campaigns, competitions, merchant discount schemes/loyalty programmes or other schemes of similar nature offered to customers or prospective customers by means of incentives etc.

         

        Amended: January 2022
        Added: October 07

         

      • BC-1.1.2

        Conventional retail bank licensees must ensure that all the following requirements are met with regards to promotion of products or services:

        (a) They do not involve a breach of Bahrain law or any other relevant applicable law or regulation;
        (b) All documentation concerning promotions is in a language necessary for customers to fully understand and appreciate the products or services;
        (c) Customers to whom promotions are directed must enjoy equal opportunity in terms of access to, and treatment within such schemes;
        (d) The communication concerning promotions must be clear, concise, truthful, unambiguous and complete to enable customers to make a fully informed decision; and
        (e) Where the promotion involves communication of earnings potential or benefits associated with the products or services promoted, all costs, charges or levies and risks are also disclosed.

         

        Amended: January 2022
        Amended: October 2012
        Amended: January 2011
        Added: October 07

      • BC-1.1.3

        Licensees using character-limited media (e.g. social media platforms such as Instagram, Facebook etc.) as a means of promoting complex features of financial products or services should provide a reference or link to more comprehensive information available elsewhere.

         

        Amended: January 2022
        Amended: January 2011
        Added: October 07

      • BC-1.1.4

        Conventional retail bank licensees must ensure that the following requirements are met with regards to raffles/lotteries:

        (a) Adequate systems and documented procedures are in place that describe the checks and balances to ensure fair play, impartiality and the inclusion of eligible participants as well as for informing participants of the results of a raffle/lottery without delay;
        (b) They are subject to the rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry, Commerce and Tourism;
        (c) The raffle draw date of the announced prize/incentive/campaign is disclosed in advance to the public and that other subsequent announced prize/incentive/campaign follow the same approach. Raffle dates must not be postponed unless a valid reason is stated/indicated;
        (d) The winner(s) report includes the winner's name, CPR number, mobile number and the number of chances (e.g. tickets/ certificates) in the draw;
        (e) Each draw of the raffle/lottery held as part of the bank’s promotional scheme is independently verified and monitored/witnessed by the bank’s internal auditor and, additionally, draws involving prizes of BD 10,000 or above in aggregate must be independently verified and monitored/witnessed by the bank’s external auditors;
        (f) An annual check and a comprehensive audit on the “raffle draw” system is conducted by the external IT auditor. In addition, a detailed report in this regard from such auditor must be submitted to the CBB within 3 months from year-end and a copy is sent to the consumer protection department in the Ministry of Industry, Commerce and Tourism; and
        (g) The internal auditor periodically reviews, at least annually, all promotions, raffles/lotteries in addition to the systems, procedures, processes and related operational risks.

         

        Amended: January 2022
        Amended: April 2008
        Added: October 07

    • General Requirements

      • BC-1.1.5

        The requirements of Paragraph BC-1.1.4 do not apply to promotions or giveaways generally offered and selected through draws to customers on an ad hoc basis (at no cost to the customer, implicit or otherwise). In such cases, there is no direct link between the acquisition of the products or services by the customers and the periodic raffle draw/lotteries.

         

        Amended: January 2022
        Amended: April 2011
        Added: April 08

      • BC-1.1.6

        While there is to be no formal restriction on the types of incentive which may be used by institutions, care should be taken to ensure that promotional schemes do not negatively affect the integrity, reputation, good image and standing of Bahrain and/or its financial sector, and do not detrimentally affect Bahrain's economy.

        Amended: April 08
        October 07

      • BC-1.1.7

        Bearing in mind the reputation of, and the requirement to develop, the financial sector in Bahrain, as well as the need to act at all times in the best interests of the customer, banks need to take adequate care to ensure that promotional schemes do not unreasonably divert the attention of the public from other important considerations in choosing a bank or a banking/financial product.

        Amended: April 08
        October 07

      • BC-1.1.8

        All documentation concerning promotional schemes should be in Arabic and English and, if relevant, any other language necessary for customers to fully understand and appreciate their terms and conditions. Such terms and conditions, including any related advertising, need to be clear, concise, truthful, unambiguous and complete so as to enable customers to make a fully informed decision.

        Amended: April 08
        October 07

      • BC-1.1.9

        Customers to whom promotional schemes are directed should enjoy equal opportunity in terms of access to, and treatment within, such schemes.

        Amended: April 08
        October 07

      • BC-1.1.10

        No costs (including funding costs), charges or levies associated with promotional schemes should be concealed from prospective customers.

        Amended: April 08
        October 07

      • BC-1.1.11

        All material related to promotional schemes, particularly where raffles/lotteries etc. are concerned, must be maintained for a minimum period of 5 years (see Paragraph OM-7.3.4).

        Amended: April 2011
        Amended: April 08
        October 07

      • BC-1.1.12

        Any raffles/lotteries etc. held as part of promotional schemes should be independently monitored (e.g. by the institution's external auditor) and adequate systems put in place to ensure fair play and impartiality.

        Amended: April 08
        October 07

      • BC-1.1.13

        An appropriate system must also exist for informing participants of the results of a raffle/lottery without delay. Institutions must note that raffles/lotteries etc. may be subject to rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry and Commerce.

        Amended: April 2011
        Amended: January 2011
        Amended: April 08
        October 07

      • BC-1.1.14

        Banks may use small 'gifts' as an inducement to members of the public to use banks' services, provided such gifts are offered on a general basis and have a low monetary value.

        Amended: April 08
        October 07

      • BC-1.1.15

        Due note should be taken of the overriding provisions of Bahrain (and any other relevant) law in relation to institutions' duties to customers to the extent (if any) that promotional schemes might impact on such duties.

        Amended: January 2011
        Amended: April 08
        October 07